Example Of A Forex Trading System: Part 1
Enough theory about forex trading systems! Here we give a practical example of a simple system for currency trading. This is a universal system that both short-and long-term can be used. This system is for illustrative purposes only and does not constitute any investment advice. Read our site terms of use.
Purpose and Operation of this forex trading system
PURPOSE
In a rising market a price drop and buy in a falling market koersopvering sell.
SYSTEM OPERATION
The trend is determined by a crossover of two moving averages (one long and one short) and the purchase and sale are determined by an oscillator, in this case Laquerre.
A sale zone is created when the MA to the shorter of the long-MA crosses from below. In this case we only look at possible buy signals.
A buy signal is generated when we sit in the sale area AND the Laquerre oscillator is oversold (situated between the values 0 (ideal) and 0.15) and then to rise back above the 0.15 level. It is immediately purchased when the oscillator rises above the 0.15 value.
A sales zone is created when the MA to the shorter of the long-MA crosses from above, in this case, we will look at only possible sales signals.
A sell signal is generated when we sit in the sales area AND the Laquerre oscillator is overbought (located between the values 1.05 (ideal) and 0.75) and then to fall back below the 0.75 level. It is immediately sold when the oscillator falls back below the 0.75 value.
Go to the next page for a practical example of this trading system.
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Forex is simple follow the trend and you will rich.
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